Commodities diverge sharply
Gold prices have surged 47% to $4,677 per troy ounce while crude oil struggles to hold above $60 per barrel, marking one of the widest divergences between the two commodities in recent years.
WTI crude traded at $59.35 on Monday, down slightly, while Brent held at $64.08. Meanwhile, gold has rallied from around $3,170 at the start of the year to near record highs.
Safe-haven demand drives gold
Investors have piled into gold amid economic uncertainty and geopolitical tensions. The precious metal has traded between $4,464 and $4,715 over the past week alone, reflecting strong momentum.
Silver has followed a similar path, gaining 5.7% to $94.28 per troy ounce.
Oil faces headwinds
Crude prices remain under pressure from:
- Concerns over global demand growth
- OPEC+ production decisions ahead of a February meeting
- Uncertainty around US energy policy under the incoming administration
The OPEC basket price sits at $61.12 per barrel, with overall market sentiment described as slightly bearish by analysts.
What it means
The divergence suggests investors are prioritizing capital preservation over growth-oriented commodities. While gold benefits from its traditional safe-haven status, oil markets continue to grapple with supply-demand imbalances that have kept prices range-bound for months.